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The manufacturer-distributor relationship is vital to many businesses, yet it’s fraught with challenges and conflicts.

We’ve examined distributor strengths and shortcomings in recent articles. Let’s take a look at some of the ways manufacturers undermine distributor relationships and damage their own sales channel in the process.

The primary reason distributors exist is to get products into customers’ hands. But in respect to sales, marketing and customer relationships, distributors say manufacturers:

Provide too few leads

Have unrealistic sales expectations

Expect distributors to buy large quantities of stock

Are removed from the marketplace

Focus on their products and selling

Don’t understand the customers

Don’t understand what customers really want and need

Distributors need to understand how products work and perform in varied environments and applications. However, in respect to products and technical support, distributors say manufacturers:

Don’t provide technical support people with sufficient technical knowledge

Business management and money conflicts are a source of common complaint. Distributors say manufacturers:

Are not committed to them

Don’t provide e-business options to expedite transactions

Are too rigid on pricing

Invoice distributors inaccurately

Compromise commissions and overrides by selling directly to customers

Make too many mistakes result in slow deliveries, incorrect shipments and difficulty in processing returns

Like any business relationship, trust and mutual commitments are important. Distributors say manufacturers:

Aren’t loyal to the distributor

Won’t allocate exclusive sales territories

Don’t communicate with the distributors

Don’t involve distributors in goal setting and planning

Don’t build strong relationships with distributors

Are you a distributor? manufacturer? Do these hotspots sound familiar?

It's clear there's an underlying current of conflict and dissatisfaction that creates unnecessary friction between manufacturers and distributors. That undercurrent in turn adds cost to the sales process and hampers productivity and efficiency.

These factors reduce profitability, and when that happens, everyone loses.
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